Khaberni - Oil prices stabilized on Wednesday after a decline of about one percent in the previous session, as supply concerns limited gains, while investors await progress in the Russian-Ukrainian peace talks.
Brent crude futures rose 11 cents, or 0.2%, to $62.05 a barrel at 02:41 GMT. The price of West Texas Intermediate crude in the U.S. reached $58.38 a barrel, up 13 cents, or 0.2%.
While the oil market is heading towards an anticipated surplus, a note issued by ING bank stated that Russian supplies still pose a risk.
ING said, "Although the volumes of Russian oil exports shipped by sea maintain good levels, these barrels are having difficulty finding buyers," adding that Russian oil production will begin to decline if buyers cannot be found.
Ukrainian President Volodymyr Zelensky stated that his country and its European partners will soon present the United States with "revised documents" regarding a peace plan to end the war with Russia, following intense diplomatic efforts over several days.
A peace agreement between Ukraine and Russia could lead to the lifting of international sanctions imposed on Russian companies, which could allow an increase in restricted oil supplies.
In the meantime, the U.S. Energy Information Administration stated that it expects U.S. oil production to achieve a higher record this year than previously anticipated, raising its forecast for 2025 by 20,000 barrels to an average of 13.61 million barrels per day.
However, the Administration reduced its total production forecast for 2026 by 50,000 barrels to 13.53 million barrels per day.
